Wanting small personal loan but now part time and partner no credit rating

bailey1183

Hi there,

Just wondering if anyone can help as I am in a bit of a catch 22 situation here. My partner has the opportunity for a great job with a £3k payrise. Problem is he will need transportation so wants to buy a 125cc bike until he can pass his driving test (we do already have a car that I drive but he would need to be able to start this job in 2 weeks!).
I have tried to apply for a small personal loan with my bank but was declined apparently due to affordability as I am on maternity.
My first question about this is does this mean they actually credit checked me or they just assessed based on what I said I earn that I can't afford it?
Secondly, my partner has never borrowed anything in his life ever. A couple of months ago we got sofas from DFS in his name and were accepted but thats it.
He has paid some of the bills from his account regularly since we moved in together 2 years ago.
He unfortunately went overdrawn last month due to a charity direct debit that he forgot he'd agreed to.
What is the likelihood of him being able to get a small personal loan?
Would we be better making a joint application?
I'm at a loss because he needs this bike to earn more money but we need more money to buy the bike!!!

TIA

CLAPTON

how much does he earn

how much are his debts

how much does he want to borrow

does he have an overdraft facility

does he have a credit card

bailey1183

Clapton - he doesnt have any debts, credit card or overdraft as he has never ever borrowed anything. He wants £1000 ad earns £15000 per annum at the moment but this new job will increase it to £18000.

Luckynigel - you hit the nail on the head there with him complaining, he basically will not have anything less than 125cc (infuriatingly!!). He isnt the one who worried about the finances and sorts them (money burns a hole in his pocket so he would happily get finance for a very expensive one if he had his way but we cant afford that).
We would do the payday loan but cant afford to pay back within the month which was why were just looking for a personal loan with a bank to pay back over 12-24 months but I dont know whether they will accept him on his own with having never borrowed before as well as going overdrawn last month.

Would my application to my bank today go against us if we applied for a joint loan?
I dont even know if they did a credit check because once I entered my earnings and rent payment they immediately came back with the response that I had been denied based on affordability,

Tixy

How much is he looking to borrow? How quickly can he repay it?

How far is his commute going to be? is there anyway he could do it by public transport for the first few weeks until his first payday and then buy a scooter after that? Or as you are on maternity could you drive him to and from work for a few weeks?

gb12345

bailey1183 wrote: »

He wants £1000 ad earns £15000 per annum at the moment but this new job will increase it to £18000.

Has he spoken to his own bank?

The problem he has is that he has no credit history, so an online application will likely get rejected as they have no way of assessing his ability to handle credit.

If he speaks to his own bank then they should be able to see that he has a regular income and only the one problem with going overdrawn.

He's not going to be offered a headline rate, but with the extra income he's going to have, he should be able to overpay and clear it off quickly.

bailey1183

Tixy - no with me on maternity we cannot get £500-600 together in a short space of time and there are no bus services that go to where he will be working. I can drive him into work but he works evenings and finishes at 10pm when our daughter will be in bed so I cant pick him up and noone can give him a lift.

His commute will be about 20 minute drive away, which wont be possible in winter to even use a push bike.

Its typical timing as he isnt too far off passing his driving test but that all depends on whether he passes first time etc. It took me three months to pass my test coz I failed once and rescheduled and earliest was a month later, that one was then cancelled due to weather and then the next earliest was another month later.

Its so frustrating because I know we can afford to pay back a loan but no-one seems willing to loan us it and its all because I had a baby and my partner has never had any debt.

bailey1183

gb12345 wrote: »

Has he spoken to his own bank?

The problem he has is that he has no credit history, so an online application will likely get rejected as they have no way of assessing his ability to handle credit.

If he speaks to his own bank then they should be able to see that he has a regular income and only the one problem with going overdrawn.

He's not going to be offered a headline rate, but with the extra income he's going to have, he should be able to overpay and clear it off quickly.

Hi, I didnt think of that actually, would it be better if he spoke to someone in person then? A case of "computer says no" online then?

I've been becoming so annoyed with it all becasue we are currently saving for a mortgage and I just feel whats the point if we cant even get a loan for £1000! How will we ever get a mortgage!!

Tixy

Could you not use some of the mortgage savings in the short term?

If not then trying his own bank does seem like his best shot.

In terms of being accepted for a mortgage when the time comes - they do use have quite different lending criteria than for unsecured credit. And presumably you wouldn't still be on maternity leave at that point.

iancrt

bailey1183 wrote: »

Tixy - no with me on maternity we cannot get £500-600 together in a short space of time and there are no bus services that go to where he will be working. I can drive him into work but he works evenings and finishes at 10pm when our daughter will be in bed so I cant pick him up and noone can give him a lift.

His commute will be about 20 minute drive away, which wont be possible in winter to even use a push bike.

Its typical timing as he isnt too far off passing his driving test but that all depends on whether he passes first time etc. It took me three months to pass my test coz I failed once and rescheduled and earliest was a month later, that one was then cancelled due to weather and then the next earliest was another month later.

Its so frustrating because I know we can afford to pay back a loan but no-one seems willing to loan us it and its all because I had a baby and my partner has never had any debt.

The 'system' may be doing you a favour. an extra 3k a year will bring home an extra £180 (ish) a month. That's 6 months for the £1000 instead of 12-18 months paying off £1000..
So:
1. You baby will be asleep! in reality she wont care is she is at home in bed or in a car seat or awake or asleep.
2. You can ride a push bike in winter, who says you can't?
3. You can walk, you could run!
4. A bus may not go all the way, how close does it get?

You don't have to commit to one thing here. mix it all up. At the moment cycling is quite pleasant.
Walking keeps you fitter (cancel / freeze Gym?).
Sometimes you may like to take baby out for a drive as its guaranteed to get them to sleep.

You can then either save for the scooter, or spend the money on driving lessons. if getting driving lessons double up a week, get picked up at work and dropped off at home.

Once he starts the job he may find someone going his way, or so far his way.

Don't make the loan for a scooter a condition of taking the job. Look at all other options even just as a temporary measure.

KingElvis

You may need to forget it as no reputable company will touch you if your own bank have declined you.

Sorry but that's a fact.

Thomas_The_Tank_Top

bailey1183 wrote: »

I've been becoming so annoyed with it all becasue we are currently saving for a mortgage and I just feel whats the point if we cant even get a loan for £1000! How will we ever get a mortgage!!

Common sense says use your mortgage savings to pay for his scoot.

Unless of course, you have no savings, and were just saying you have?